Bradenton, FL

It's finally really here. Of course, this is a little old news, as people have been saying that the tax credit was approved fro the past week. Nothing is in stone until the President signs the bill into law.

It would have been nice if this could be extended to ALL home buyers. This would cause the investors back in the market in droves, and snapping up all the investment homes. Could you imagine buying a rental home for 50,000 and getting back 8,000 of your taxes?

Kind of like when everyone was driving HUMMERS because they could write off the full cost of the vehicle in the first year. I am happy with this extension because personally I have four contracts pending with First time home buyers that were probably not going to close by the deadline. It would have been ugly for all those that were counting on the credit if they couldn't get it.

Here are the highlights

• the stimulus bill will extend the 8,000 dollar tax credit to First time home buyers from the current deadline of November 30. until May 1, 2010. If you are under contract by April 30, then you will qualify as long as you close by July 1, 2010.
• "MOVE UP" buyers can now qualify for up to a 6,500 dollar tax credit if they are buying a primary home, and have lived in their current home for at least 5 years. (This is really great, although it would be better if it was for all home-buyers regardless of purpose)
• All U.S citizens that file taxes are eligible
• The tax credit has no pay back provisions so that you don't pay anything back over time, and if your taxes are less than the credit you will get a refund back.

Here is the FINE PRINT

• Home-buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income is less than $125,000.
• For married couples filing a joint return, the combined income limit is $225,000.
  
• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
  
• The credit is not available for single taxpayers whose income is greater than $145,000 and married couples with an income that exceeds $245,000.
• The maximum price of the home can not exceed 800,000. Bummer..

When you need a great Realtor in Manatee County please give me a call. I am ready to help.

Short sale expert, REO-Bank owned, and investment properties

Joe Murphy

Coldwell Banker Residential Real Estate

941-780-3260

I just attended a Foreclosure rescue seminar this past weekend. One of the things that I learned is their is another victim besides the homeowner, the INVESTOR. These "mortgage backed securities" were supposed to be safe investments. Triple AAA rated, SAFE, reasonable returns. The kind of investments that were sold as low risk. They too are being burned in this real estate bubble.

The people in the middle: servicer(s), and the firms that sold these mortgages to the investors got their profits and no consequence.

The homeowner loses their home and credit, and the INVESTOR that actually put up real money, takes the loss. No one that originated, or sold, and resold the mortgages had any loss. In fact they are making money with fees from the foreclosures! The pension fund that owns your mortgage does not have an REO dept, do they!

I attended the seminar because I wanted to gain insight, and perspective from homeowner's and their attorneys that are attempting to defeat, or force REAL loan modifications. In some (rare) cases the homeowners are getting their home "free and clear", most often the attorneys are able to stall the foreclosure sale to help the homeowner get back on their feet. Their arguments make sense. Some of it attracts the people that are just trying to get their mortgage wiped out. Sounds good, but really this is the exception not the rule.

What I found was a lot of people that are in tough situations, upside down in their homes, but wanting desperately to keep them. These were people that I meet everyday that end up short selling their homes.

My experience is that the "token" loan modifications never include principle reduction, and typically only reduce the payment by a very small percentage. Soon they realize that if their home has lost half the value it makes no sense to stay. Short sales look attractive.

One major insight that I gained was a major conflict of interest between the "SERVICER", and the "INVESTOR". It was amazing to see how much money was made off the mortgage mess for all the people in the middle. Every time the loan was sold, repackaged, split-up, someone made money.

The servicer makes money, handling the payments for the investor. They also make additional fees when they start dealing with a default situation, then when the homeowner defaults, they make money farming out the REO deal. The investor gets the short end of the stick, they get the loss. I think that more investors would be eager to actually take principle reduction loan mods. If the "middle men" had some real incentive to make a deal happen. Just the fixed foreclosure costs being reduced from the principle would be incentive for many homeowners to stick it out, work harder, and find a way to keep their home.

In my market homes are selling for HALF of their boom price. When will the banks, and investors get it that keeping people in their homes is good for them, and everyone else too.

If you or someone you know needs help buying or selling real estate in Manatee County please give me a call, text, or email. There is help for you if you need it! I have closed 38 transactions in the past 12 months, and I am ready to help with yours. Short sales do not have to be scary.

Joe Murphy, Broker-Associate

Coldwell Banker Residential Real Estate

941-780-3260

joe@manateemoves.com

www.activerain.com/manateemoves

www.manateemoves.com

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I found this interesting document through searching for info on foreclosure defense, and loan modifications. With the rise in mortgage defaults attorneys that specialize in foreclosure defense have plenty of work

Most people that I meet with are interested in first a "principle reduction loan modification". They are having a tough time keeping up with the mortgage because of lower income, interest rate resets, or they just realize that they are severely upside down in their home. I do not see many instances where the homeowner has been successful in reducing the mortgage balance.

It makes common sense that the current home owner is really the best person to own the home most of the time. I am only there because they were denied a reasonable loan modification, or they really need to move. That''s when the foreclosure defense attorney can potentially help.

In working short sales I have seen there effect is mostly stalling a foreclosure sale and responding to homeowners being served foreclosure papers.

This guide gives examples of cases where Judges have actually reduced or wiped out mortgages on defendants properties! ( which is really what everyone really wants!)

Anyway, this makes for an interesting read into the world of foreclosure defense, and I thought I would post it as a resourse for consumers to get educated, and other agents to gain knowledge. It is written by an attorney for other attorneys so be prepared.

http://www.miamidade.gov/csd/library/foreclosure_dtlrespa.pdf

Let me know what you think.